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MEXICO: USDMXN Slides Back to 20.50, Banxico Decision Upcoming

MEXICO
EM BulletMexicoBulletGlobalEmerging Market NewsRegionNorth America
  • A solid half a percent pullback for the broad dollar index has helped the Mexican peso stabilise on Thursday, with USDMXN edging back to 20.50 with the November Banxico decision a little under two hours away.
  • The stalling USDMXN topside momentum in the week following the election should bolster the likelihood of the Banxico committee continuing with its gradual easing cycle and cutting the overnight rate by 25bps to 10.25%. However, it is worth noting that JP Morgan is still calling for an unchanged decision.
  • The vote split in either scenario will be eagerly awaited following Espinosa’s dovish shift in September.
  • The trend condition in USDMXN is unchanged, it remains bullish, and the pair is trading closer to its recent highs of 20.8072, the Nov 6 high. A breach of this hurdle would cancel any short-term reversal signal and confirm a resumption of the uptrend. Initial support is seen at 20.1235, the 20-day EMA.
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  • A solid half a percent pullback for the broad dollar index has helped the Mexican peso stabilise on Thursday, with USDMXN edging back to 20.50 with the November Banxico decision a little under two hours away.
  • The stalling USDMXN topside momentum in the week following the election should bolster the likelihood of the Banxico committee continuing with its gradual easing cycle and cutting the overnight rate by 25bps to 10.25%. However, it is worth noting that JP Morgan is still calling for an unchanged decision.
  • The vote split in either scenario will be eagerly awaited following Espinosa’s dovish shift in September.
  • The trend condition in USDMXN is unchanged, it remains bullish, and the pair is trading closer to its recent highs of 20.8072, the Nov 6 high. A breach of this hurdle would cancel any short-term reversal signal and confirm a resumption of the uptrend. Initial support is seen at 20.1235, the 20-day EMA.